The March, 2016 edition of Broker World Magazine features an article called “Reflecting On Rates – Examining The Outlook of Today’s LTCI Pricing” written by two actuaries, Marc Glickman and Laury Falter, both of www.LifeCareAssurance.com. I can email this article to you.
They state that there is strong evidence of significant and mostly unrecognized safety in current long-term care insurance (LTCi) pricing, as a result of the Society of Actuaries Pricing Project, a very long range study.
They explain “LTCi pricing is now more conservative than ever because interest rates are at historical lows. Lapse rates have been effectively de-risked, and both mortality and morbidity reflect more conservative best estimates.”
The odds of suffering oppressive, frequent rate hikes on today’s LTCi policies are very low. The article goes on to back up these claims.
Of interest is a new trend caused by improved mortality and morbidity, meaning LTCi policyholders are dying, getting sick, and filing claims later than expected.
Only about 22 % of all LTCi claims are caused by Alzheimer’s Disease or other dementias. However, the article states that over half of all LTCi claim costs are due to Alzheimer’s or dementia.
Today’s LTCi policies are more lenient than ever. Buyers can expect very stable rates going forward!